The recent lawsuit involving the National Association of Realtors (NAR) and subsequent news coverage have sparked significant discussion within the Realtor community. I’d like to take this opportunity to share my perspective on the home buying and selling process, how Realtors are compensated, and the concept of ‘Uncompensated Effort.’
Realtors earn what is known as a ‘Success Fee.’ Essentially, we provide all our services for free until the transaction is closed and funded, at which point we receive a commission. Efforts that do not result in a closing are what I call ‘Uncompensated Effort.’ Every Realtor incurs this overhead, and it’s an integral part of a system that benefits consumers.
Both buyers and sellers appreciate this system because it allows them to access services at no cost, even if they never purchase a home or their property doesn’t sell.
